BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -The scarcity problem arises because our needs and wants are unlimited. While an increase in the productivity of our resources increases our capacity to produce more goods and services, it will still not be enough to satisfy all our needs and wants since our needs and wants are unlimited.

Detailed explanation-2: -Resource scarcity occurs when demand for a natural resource is greater than the available supply – leading to a decline in the stock of available resources. This can lead to unsustainable growth and a rise in inequality as prices rise making the resource less affordable for those who are least well-off.

Detailed explanation-3: -In economics, the concept of scarcity conveys the opportunity cost of allocating limited resources. Common resources like clean air and a sustainable climate have been increasingly recognized as scarce goods with costs as well as value.

Detailed explanation-4: -Scarcity falls into three distinctive categories: demand-induced, supply-induced, and structural.

Detailed explanation-5: -If there is no scarcity of resources, then economics will be ceased to exist.